Turkey continues to be one of the most attractive gateways for foreign businesses looking to access both European and Middle Eastern markets. With a young, skilled, and affordable workforce, a strong tech sector, and growing logistics infrastructure, Turkey is a strategic choice for global expansion.
But not every company is ready to go “all in.”
For businesses that want to hire local talent without fully committing to establishing a local entity, two paths often come into consideration:
- Partnering with a Joint Venture (JV)
- Hiring through an Employer of Record in Turkey (EOR)
Each model has its own advantages and limitations. In this article, we’ll compare EOR vs. Joint Venture in Turkey, and help you determine which one is better for your hiring goals—especially if you’re testing the waters before scaling.
What Is an Employer of Record (EOR) in Turkey?
An Employer of Record Turkey is a third-party provider that legally employs staff on your behalf. It allows your company to:
- Hire full-time Turkish employees
- Pay salaries and taxes in local currency
- Comply with labor laws and social security (SGK) obligations
- Avoid the need to open a local legal entity
You maintain control over the employee’s day-to-day work, while the EOR handles the employment administration and legal compliance.
This model is ideal for businesses seeking speed, flexibility, and low-risk hiring in Turkey.
What Is a Joint Venture in Turkey?
A Joint Venture involves a legal agreement between a foreign company and a Turkish partner to form a new business entity. This shared entity is usually registered as a limited liability company (Ltd.) or joint-stock company (A.Ş.), and both parties share:
- Ownership and management responsibilities
- Profits, losses, and liabilities
- Strategic direction and investment commitments
JVs can be powerful tools for deep market entry, particularly in regulated or relationship-driven sectors like construction, energy, or manufacturing.
Key Differences Between EOR and Joint Venture in Turkey
Let’s compare the two models across the most important factors:
| Criteria | Employer of Record (EOR) | Joint Venture (JV) |
|---|---|---|
| Legal entity setup | No entity required | New Turkish entity must be created |
| Speed to hire | 5–10 days | 3–6 months minimum |
| Ownership | 100% foreign-controlled | Shared with Turkish partner |
| Local compliance | Handled by EOR | Fully on your responsibility |
| Cost | Pay-per-employee model | Setup, legal, HR, and compliance costs |
| Control over staff | Full operational control | Shared HR decisions with JV partner |
| Best for | Testing market, remote hiring, fast scaling | Long-term investments, capital projects |
When an EOR Makes More Sense
The Employer of Record Turkey model is ideal when:
✅ You want to test the Turkish market before making a full investment
An EOR lets you hire a few employees to validate market demand, customer behavior, or operational feasibility before launching a full-scale business.
✅ You need to hire quickly—without waiting for legal setup
Setting up a company in Turkey takes months and involves lawyers, accountants, tax registration, and local addresses. EOR onboarding can happen in a matter of days.
✅ You’re hiring remote employees in multiple Turkish cities
EORs enable nationwide coverage—you can hire in Istanbul, Izmir, Gaziantep, or smaller towns, without opening branch offices.
✅ You want to reduce legal exposure and overhead
The EOR is legally responsible for employment contracts, payroll, SGK filings, severance obligations, and labor disputes.
✅ You want full operational control without sharing equity
With an EOR, you manage your Turkish team entirely. There’s no ownership dilution or co-decision-making with a local partner.
When a Joint Venture Might Be the Right Choice
Despite its complexity, a Joint Venture in Turkey could be the better option if:
✅ You’re entering a heavily regulated sector
Some industries in Turkey (like energy, defense, or broadcasting) require local ownership or licensing—making JVs mandatory or strategically advantageous.
✅ You need local market intelligence or political relationships
A JV partner can offer connections, distribution networks, and cultural insight that would take years to build from scratch.
✅ You’re committing to long-term infrastructure or investment
If you plan to build facilities, enter government tenders, or employ hundreds of people, a JV can help share risk, cost, and regulatory burden.
✅ You’re merging with or acquiring a Turkish business
In this case, a JV structure may emerge as part of a merger or partnership negotiation.
Real-World Example: EOR vs. JV in Action
Scenario 1: A SaaS company from Germany
Wants to hire 6 developers and a sales manager in Istanbul. They want to test the market over 12–18 months and keep costs low.
✅ Solution: Hires all 7 employees via a Turkish EOR. Fast onboarding, no entity setup, full legal compliance, and optional transition to a local entity later.
Scenario 2: A U.S.-based solar energy company
Wants to bid for a multi-million-dollar project funded by a Turkish ministry. Needs to demonstrate local presence and compliance.
✅ Solution: Forms a Joint Venture with a reputable Turkish EPC firm. Gains access to regulatory approvals, project bidding, and local know-how.
Costs: EOR vs. JV in Turkey
Let’s break down a simplified cost comparison.
EOR Costs:
- Monthly fee per employee (varies based on salary)
- Optional onboarding or HR support fees
- No legal setup or ongoing maintenance fees
JV Costs:
- Legal registration fees
- Turkish lawyer and accountant retainers
- Monthly HR, payroll, and compliance management
- Office space and capital requirements
- Risk of partner misalignment or contract disputes
While JVs can offer long-term ROI, EORs are significantly cheaper for companies testing the market or operating remotely.
Transitioning from EOR to Entity or JV
The EOR model is not limiting—you can always transition to a legal entity or JV later. In fact, many companies use EORs for:
- Soft market entry (6–18 months)
- Team building and brand awareness
- Customer discovery or local partnerships
- Gradual handoff into a formal Turkish branch or JV structure
Think of the EOR model as a launchpad—giving you agility today and flexibility tomorrow.
Final Thoughts: Which Is Better for You?
If your goal is to:
- Enter the Turkish market quickly and legally
- Hire remote or hybrid workers in Turkey
- Maintain 100% control over your team
- Minimize risk, cost, and long-term obligations
Then Employer of Record Turkey is the better path.
If your strategy involves:
- Long-term investment in capital-heavy sectors
- Shared ownership with Turkish stakeholders
- Building facilities, managing inventory, or bidding on large-scale projects
Then a Joint Venture may be the right choice.
Bottom Line
The best approach depends on your goals, resources, and time horizon. But for many companies entering Turkey in 2025, the EOR model offers unmatched flexibility, speed, and compliance—making it the ideal solution for hiring without full market commitment.
Need to hire in Turkey without setting up a company or forming a joint venture?
Our EOR services make it simple, legal, and fast. Let us help you build your Turkish team with confidence.
Contact us today to learn more about how an Employer of Record can support your growth in Turkey.